Mumbai, Dec 17 (IANS) Silver prices hit fresh all-time highs on Wednesday, as strong global cues and rising expectations of interest rate cuts pushed the precious metal sharply higher.
On the Multi Commodity Exchange (MCX), silver prices surged more than 4 per cent in early trade, extending their recent breakout rally.
During early trade, MCX silver was trading 3.38 per cent higher at Rs 2,04,445 per kg after touching a lifetime high level.
In contrast, gold prices showed some weakness. MCX gold for February delivery slipped 0.21 per cent to Rs 1,34,129 per 10 grams.
“A sustained breakout above Rs 1,35,500, supported by renewed USD/INR strength, would strengthen bullish momentum and open the next expansion zone at Rs 1,36,000–Rs 1,38,000,” experts said.
“The broader bullish structure remains intact as long as prices hold above the Rs 1,33,000–Rs 1,32,600 support zone,” experts stated.
In the international market, silver also witnessed a strong rally. Spot silver jumped 2.8 per cent to a record high of $65.63 per ounce, crossing the $65 mark for the first time ever.
Spot gold was trading slightly higher at $4,321.56 per ounce by 0230 GMT, supported mainly by a weaker US dollar.
The sharp rise in silver prices came after weak US labour market data strengthened expectations of interest rate cuts by the Federal Reserve.
Data showed that the US unemployment rate rose to 4.6 per cent in November, suggesting a slowdown in the labour market.
This has increased demand for non-yielding assets like precious metals, especially after the central bank signalled a dovish stance following its final quarter-point rate cut of the year.
Geopolitical tensions also added to the buying momentum. US President Donald Trump ordered a blockade of all sanctioned oil tankers entering and leaving Venezuela, escalating pressure on President Nicolas Maduro amid reports of increased military activity in the region. The development boosted safe-haven demand, further supporting silver prices.
--IANS
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